Take a quick glance of this case study and analysis.
What kind of problem are we solving, what is the
story?
- We are tackling an inventory management and cost optimization
problem for a supply chain that involves multiple regional distribution
centers and a potential national distribution center. This analysis aims
to compare the efficiency and cost-effectiveness of using regional
distribution centers versus a centralized national distribution center
for three different products. The story unfolds through a detailed
examination of daily demand data, calculating key inventory metrics, and
transportation costs to determine the optimal distribution strategy that
minimizes costs and maximizes service levels. This study is part of a
project for the UC San Diego, MSBA program; MGTA 456 - Supply Chain
Analytics course.
What is the goal of the analysis?
- The goal of this analysis is to calculate and compare key inventory metrics and transportation costs for both regional and national distribution centers. By doing so, we aim to identify the most cost-effective distribution strategy for each product, considering factors such as order quantities, cycle stock, safety stock, and inventory holding costs. Ultimately, the analysis seeks to inform strategic decisions regarding the optimal distribution setup that balances cost efficiency with service level requirements, thereby enhancing overall supply chain performance.